BSE shares experienced a significant uptick, rising 2.6% to ₹2,542.8, as traders bolstered their bullish derivative positions following SEBI's reassurance that a blanket ban on weekly options is not on the cards. This clarification, made on Friday, sparked renewed interest in the stock, leading to a surge in trading activity.

Market Performance

• BSE shares jumped as much as 4% during intraday trading
• Fresh long position build-up observed with a 2% increase in open interest for BSE stock futures
• The stock decisively surpassed the ₹2,520 resistance level

Recent Performance and Market Sentiment

BSE shares have faced pressure due to uncertainty surrounding SEBI's planned restrictions on the weekly futures and options segment. This uncertainty has impacted the stock's performance:

Technical Analysis and Future Outlook

Analysts have noted the stock's strong performance, breaking through key resistance levels. Some projections suggest potential upside:

• Possible movement to ₹2,750-2,800 levels

However, caution is advised due to several factors:

1. The stock may be in the final stages of its current rally
2. Potential pressure when NSE IPO is announced
3. BSE currently trades at a 30-40% premium to NSE shares in the grey market
4. High valuations warrant careful consideration

Investor Considerations

While the recent surge and SEBI's clarification have boosted market sentiment towards BSE, investors should consider the following:

1. The stock's recent underperformance compared to the broader market
2. Potential impact of the upcoming NSE IPO on BSE's valuation
3. Current high valuations and their sustainability

Investors are advised to monitor further developments in the regulatory landscape and keep an eye on BSE's performance relative to its peers and the broader market before making investment decisions.

SEBI Chairman Tuhin Kanta Pandey's recent comments on weekly options expiry provisions have triggered a notable market response, particularly affecting BSE and Angel One shares. Speaking at the Business Standard BFSI Summit, Pandey addressed the ongoing debate surrounding these financial instruments.

Key Points from SEBI Chairman's Address

• Weekly options expiry provisions cannot be abruptly terminated due to their widespread use among market participants.
• The regulatory body is focused on finding an appropriate approach for derivatives markets.
• Some regulatory measures are yet to be implemented.

Market Impact

Pandey's remarks had an immediate effect on the stock market:

Future Outlook

The market regulator has outlined its next steps:

• Plan to review derivative data from July to September.
• No immediate changes to weekly expiries are planned.
• Further actions will depend on the presence of unusual trading activity in the data.

This development highlights the delicate balance SEBI must maintain between market dynamics and regulatory oversight. The recovery in BSE and Angel One shares, despite closing lower, suggests that investors found some reassurance in Pandey's measured approach to potential regulatory changes.

As the situation evolves, market participants will likely keep a close eye on SEBI's upcoming data review and any subsequent regulatory decisions that may impact the derivatives market.